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Tuesday, May 11, 2010

JAKARTA (Bisnis.com): PT Indocement Tunggal Prakarsa Tbk, the second largest cement producer, increasing the funding of capital expenditure amounted to US$ 100 million this year, up from initial projections of US$ 70 million.

Indocement Finance Director Christian Kartawijaya said a number of funds that will be used to build cement mills in Cirebon to increase production capacity of 1.5 million tons which is scheduled to be operational in May 2010.

"We also started to build two new cement mills in Citeureup with an additional capacity of 2 million tons, accelerating from the initial plan, related to market conditions and more quickly than competitors," he told the press this afternoon.

The two cement mills in Citeureup, he said, the plan can be fully operational by 2012.

Christian said the company will use funds from the company cash from retained earnings and still looking for bank loan for the funding.

Indocement booked net income IDR2.74 trillion last year. From the company's profit allocated dividend of Rp225 per share or a total of Rp282 billion.

Its composition of 30% of the total net profit of the company. Indocement President Director Daniel Lavalle said the company hopes to increase the market capitalization of the company from the current position of 31% by the expansion in 2012.

Issuers, he said, also plans to build independent power plant (IPP) to eliminate the dependence from the electrical state.

"Black out happen a few times in our factory, supposing we are a motorcycle, we can not walk fast if gasoline stalled. In addition, the rate increase plan is also one consideration."

He sees the increasing tariff plan of electricity for big consumers are less proportional.

The power plant, he said, will also be built along with the construction of a new factory complex additional capacity of 2-3 million tons in 2014. "That remains to be considered our study."